Surging Earnings Estimates Signal Upside for Patrick Industries (PATK) Stock

Patrick Industries (PATK) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company.The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this building products manufacturer, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank.The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.Consensus earnings estimates for the next quarter and full year have moved considerably higher for Patrick Industries, as there has been strong agreement among the covering analysts in raising estimates.Current-Quarter Estimate RevisionsThe company is expected to earn $0.61 per share for the current quarter, which represents a year-over-year change of +22%.The Zacks Consensus Estimate for Patrick Industries has increased 146.8% over the last 30 days, as three estimates have gone higher compared to no negative revisions.Current-Year Estimate RevisionsFor the full year, the earnings estimate of $5.34 per share represents a change of +138.39% from the year-ago number.In terms of estimate revisions, the trend for the current year also appears quite encouraging for Patrick Industries. Over the past month, four estimates have moved higher compared to no negative revisions, helping the consensus estimate increase 149.46%.Favorable Zacks RankThe promising estimate revisions have helped Patrick Industries earn a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.Bottom LineWhile strong estimate revisions for Patrick Industries have attracted decent investments and pushed the stock 222.5% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.1% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Patrick Industries, Inc. (PATK): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks